1. If an individual consumer faced the following utility function: U(X,Y) = 2X² + Y³, where X, Y > 0, which of the following assumptions would not hold? (a) Completeness (b) Monotonicity (c) Transitivity (d) Convexity (e) Continuity

Given above are some of the indifference curves for a student who consumes Burritos and Pizzas and the relevant budget line. Equilibrium is defined as the maximum utility or satisfaction given the consumer’s budget. The consumer has more indifference curves above I3, below I1, and between I1 and I2 and between I2 and I3. Out of all the indifference curves  the consumer has, only I1, I2, and I3 are shown. The given budget line touches I2 at the point where I2 touches the y-axis (Burritos axis). a) If the price of Pizzas decreased and the price of Burritos remained unchanged, would the quantity of Burritos consumed at equilibrium increase or decrease compared to the equilibrium point A in the graph given above? (b) If the price of Pizzas increased and the price of Burritos remained the same, would the consumer equilibrium point be different from point A or the same as point A in the graph given above?

marginal utility is a measure of the benefit (or value, or enjoyment) a person obtains by a) Consuming a single additional unit of a product. b)Selling a single additional unit of a product (and spending the resulting cash). c) Borrowing the dollar value of a single additional unit of a product (and spending it on something nice). d)Converting a single additional unit of product to an equivalent number of units.

Consider a consumer with utility function u(x1, x2) = min{4 min{x1, x2}, x1 + x2} (a) Draw indifference curves passing through points (2, 2), (1, 2) and (4, 2). Make sure you correctly determine kink points. What properties of the preferences can you deduce from the shape of indifference curves? (b) When X = R2 +, does UMP have a solution when p1 = p2 = 0? What property of the preference relation did you use to get your answer? (c) Assume that prices are such that p1, p2 2 0 and that p` > 0 for some `e {1, 2} (i.e. the price of at least one good is positive). Derive Walrasian demand. What are the prices for which Walrasian demand is single-valued?